NYC’s Hotel Market Defies National Trends with Surging Occupancy and RevPAR
NYC’s Hotel Market Defies National Trends with Surging Occupancy and RevPAR
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July 16, 2025 | New York City
New York City’s hotel market continues to outperform national benchmarks, according to a report cited by The Real Deal. For the first half of 2025, the average occupancy rate hit 82% — 20 points above the national average — while weekly revenue per available room (RevPAR) soared to $238.93.
Strong domestic tourism and rebounding business travel have kept demand high. NYC welcomed 64 million visitors in 2024 and is expected to match that number this year. Business travelers now account for about 20% of all hotel rooms sold, with growth expected to continue.
The city’s 2021 special permit requirement has severely limited new hotel construction, and 2023's crackdown on short-term rentals removed over 10,000 Airbnb listings. These restrictions have benefited existing hotels by tightening supply.
However, industry experts warn of potential headwinds ahead. Declines in foreign travel — attributed to federal visa policies — and recent drops in occupancy and RevPAR could pose challenges in the second half of the year.
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